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I'm not a financial advisor nor a broker/dealer. I neither provide financial advice, nor make investment recommendations. Nothing you read on this website constitutes a solicitation, recommendation, or promotion of any particular security, transaction, or investment.
I may at times discuss trades or trade setups, but this is meant to be purely a discussion point for entertainment and educational purposes only.

Wednesday, January 25, 2012

Intra-Day out of GDX, looking to get out of silver

GDX  

I closed out my GDX short this morning, with a profit.

I have two problems with a continued position in GDX from the short side.  First, I can't count five waves down.  I see a potential three wave a-b-c down, however.  Secondly, momentum is not particularly bearish, given the move down that we've had.

Still, this turned out to be a profitable trade.

Silver

Silver has been killing me.  I've been dead wrong on this trade, as it has taken out upside resistance after upside resistance.  I'm waiting for a decent pullback to get out of the trade with as small a loss as possible.
I'm thinking it trades to the top of this diagonal formation one more time, hopefully on divergent momentum.  Then we should get some selling.  If we manage to trade above that red line I have marked at the top of the chart, that will be really bullish for silver.  I have 23 days until expiration, so we'll see if we can make any downside progress next week.
Posted by Waverunner (FractalTrader) at 8:21 AM

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Notation


Wave DegreeMotiveCorrective
Grand Supercycle((I)) ((II)) ((III)) ((IV)) ((V))((a)) ((b)) ((c))
Supercycle(I) (II) (III) (IV) (V)(a) (b) (c)
CycleI II III IV Va b c
Primary((1)) ((2)) ((3)) ((4)) ((5))((A)) ((B)) ((C))
Intermediate(1) (2) (3) (4) (5)(A) (B) (C)
Minor1 2 3 4 5A B C
Minute((i)) ((ii)) ((iii)) ((iv)) ((v))((a)) ((b)) ((c))
Minuette(i) (ii) (iii) (iv) (v)(a) (b) (c)
Subminuettei ii iii iv va b c
Micro((1)) ((2)) ((3)) ((4)) ((5))((A)) ((B)) ((C))